Title III

SHARES OF THE LOCAL GOVERNMENT UNITS IN THE PROCEEDS OF

NATIONAL TAXES

1. What is an Internal Revenue Allotment? How the Congress allocate the IRAs among the
LGUs and the requirements needed to be complied by the latter in issuance of its share?

Suggested Answer:
The Internal Revenue Allotment is the hare of the local government units in the
national income of the government derived from national taxes like income , donor , estate
and other business taxes.
Local government units shall have a share in the National Internal Revenue taxes
based on the collection of the third fiscal year preceding the current fiscal year. The
allocation is 40% of the National taxes and the IRAs regularly and automatically accrue to
the local treasury without need of any further action on the part of the local government unit.